There is no way Intuitive Surgical Inc. (ISRG) can keep these numbers up

Intuitive Surgical Inc. (NASDAQ: ISRG) stock jumped 0.78% on Tuesday to $257.98 against a previous-day closing price of $255.98. With 3.13 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.05 million shares. During the session, the Medical Instruments & Supplies company that operates in wider Healthcare sector, reached to the highest price of $259.40 whereas the lowest price it dropped to was $254.23. The 52-week range on ISRG shows that it touched its highest point at $308.97 and its lowest point at $180.07 during that stretch. It currently has a 1-year price target of $284.11. Beta for the stock currently stands at 1.32.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ISRG was down-trending over the past week, with a drop of -1.43%, but this was down by -3.07% over a month. Three-month performance surged to 18.07% while six-month performance rose 17.71%. The stock lost -4.29% in the past year, while it has lost -2.78% so far this year. A look at the trailing 12-month EPS for ISRG yields 3.78 with Next year EPS estimates of 5.38. For the next quarter, that number is 1.25. This implies an EPS growth rate of 58.60% for this year and 13.97% for next year. EPS is expected to grow by 8.74% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 17.40%.

Float and Shares Shorts:

At present, 355.30 million ISRG shares are outstanding with a float of 351.65 million shares on hand for trading. On Dec 29, 2022, short shares totaled 2.86 million, which was 0.81% higher than short shares on Nov 29, 2022. In addition to Dr. Gary S. Guthart Ph.D. as the firm’s Pres, CEO & Director, Mr. Marshall L. Mohr serves as its Exec. VP of Global Bus. Services.

Institutional Ownership:

Through their ownership of 88.06% of ISRG’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 51.30% of ISRG, in contrast to 34.26% held by mutual funds. Shares owned by individuals account for 1.36%. As the largest shareholder in ISRG with 7.87% of the stake, The Vanguard Group, Inc. holds 27,811,392 shares worth 27,811,392. A second-largest stockholder of ISRG, T. Rowe Price Associates, Inc., holds 24,527,030 shares, controlling over 6.94% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in ISRG, holding 16,674,896 shares or 4.72% stake. With a 3.04% stake in ISRG, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 10,749,250 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.31% of ISRG stock, is the second-largest Mutual Fund holder. It holds 8,168,635 shares valued at 2.17 billion. Invesco QQQ Trust holds 1.33% of the stake in ISRG, owning 4,703,841 shares worth 1.25 billion.


An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Sep 29, 2022, ISRG reported revenue of $1.52B and operating income of $397.60M. The EBITDA in the recently reported quarter was $483.60M and diluted EPS was $0.85.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ISRG since 23 analysts follow the stock currently. There are 10 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 10 believe that the stock is worth HOLDING, 3 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ISRG analysts setting a high price target of $325.00 and a low target of $215.00, the average target price over the next 12 months is $276.67. Based on these targets, ISRG could surge 25.98% to reach the target high and fall by -16.66% to reach the target low. Reaching the average price target will result in a growth of 7.24% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ISRG will report FY 2023 earnings on 01/25/2024. Analysts have provided yearly estimates in a range of $5.70 being high and $4.25 being low. For ISRG, this leads to a yearly average estimate of $5.33. The surprise factor in the prior quarter was $0.05. Based on analyst estimates, the high estimate for the next quarter is $1.31 and the low estimate is $1.17. The average estimate for the next quarter is thus $1.24.

Summary of Insider Activity:

Insiders traded ISRG stock several times over the past three months with 3 Buys and 4 Sells. In these transactions, 14,375 shares were bought while 15,017 shares were sold. The number of buy transactions has increased to 62 while that of sell transactions has risen to 57 over the past year. The total number of shares bought during that period was 319,168 while 210,597 shares were sold.

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